A few years back Sony experimented with a processor to mimic your Head Rated Transfer Function (HRTF) which is the interaction of your ear canals, pinnae, head, nose, and shoulders with the incoming sound. That allows your two ears to distinguish sound direction in other than the left/rightdirections. The HRTF introduces comb filtering which your brain uses to determine space. There has been a huge amount of work referenced in the AES Journal on HRTF. It is interesting to note that most of it is not driven for the headphone group but the gamers who want to be surrounded by the sound effects of the games.
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